CONCEPT NOTE ON ESTABLISHMENT AND OPERATION OF THE “EFFICIENT COOKING AND APPLIANCES ENTREPRENEURSHIP FUND”
1.0 The Background
UNIDO is implementing a project entitled, “Operationalization of the SE4All Action Agenda: Promoting inclusive, Environmentally Sound and Low-carbon Development” in The Gambia. This project is partly funded by the Global Environment Facility (GEF) under its Climate Change Mitigation Focal Area. The project was developed following a request by the Government of The Gambia to UNIDO as an Implementing Agency for the GEF projects, to design and implement the project. The main objective of the project is to operationalize the Sustainable Energy For All Action Agenda in The Gambia by investments in improved cooking stoves and efficient appliances. The project will bring about a result that combines both technical assistance for supporting the existing institutional framework as well as investment in more efficient lamps, refrigeration, air conditioning (RACs) appliances and cooking stoves, that together, will result in a change for the better with regards to the country’s energy access situation and end-user behaviour.
As part of components (ii) and (iii), the project seeks to support projects from the private sector, public institutions, community organizations; non-governmental organizations, women and youth organisations, etc. to procure and install energy efficient appliances and produce efficient cooking stoves, and alternative cooking fuels. The utilization of these energy efficient devices by organizations and individuals will contribute towards reducing the energy consumption of the country, thereby achieving significant reduction in greenhouse gas emission. To consolidate the gains made in components 2 and 3 of the project and increase access to the energy efficient appliances and alternative cooking fuels, the project seeks to establish a fund of US$240,000.00 (Two hundred and forty thousand United States Dollars) to support the small scale production of efficient cooking stoves and alternative cooking fuels, and the distribution of energy efficient devices in the Gambia.
The United Nations Industrial Development Organisation through international competitive bidding invited proposals from prospective Fund Managers to submit proposals for the establishment and operation of the “Efficient Cooking and Appliances Entrepreneurship Fund”
The SDF’s submission and subsequent evaluation of its technical and financial proposals, was selected by the UNIDO as the Fund Manager for the implementation of the “Efficient Cooking and Appliances Entrepreneurship Fund” in the Gambia.
2.0 The Objectives of the Fund
The purpose of the Fund is to provide grant financing to private sectors, public institutions, community-based organisations; non-governmental organisations, etc, for the production and/or distribution of efficient cooking devices and alternative cooking fuels, and the distribution of energy efficient appliances.
3.0 The Target Beneficiaries of the Fund
The grant financing will be offered to the private sector, public institutions, community-based organizations; non-governmental organizations, Youth associations, private companies, SMEs, women’s groups, etc that are in need of capital investment or liquidity support.
4.0 Eligible Business Activities
Business activities eligible for financing under the Fund will include the following:
- Production and/or distribution of efficient cooking stoves
- Production and/or distribution of alternative cooking fuels
- Distribution of energy efficient appliances
5.0 Eligible Applicants
Financing will be provided to small business, entrepreneurs, start-ups, private companies, and community organizations meeting the following criteria:
- Be a registered entity, (other forms of registration/formalization will be considered)
- Should have their main business operations in consonance with the objectives of the Fund
- Should not be a business, in which the shareholders of which are involved in the operations of the Fund
- Ability to provide in cash or in kind of at least 50% of the cost of the project as counterpart contribution.
6.0 Approved Applications
Based on the application of the eligibility criteria, successful applicants will benefit from a
maximum grant financing of US$40,000.00 (Forty thousand United States Dollars).
7.0 The Operations of the Fund
The Fund will be operated under a tripartite arrangement involving the Ministry of Petroleum and Energy, the United Nations Industrial Development Organisation (UNIDO), and the Social Development Fund (SDF).
An Operational Committee comprising the above-mentioned institutions will be set up to guide the operations of the fund, and will, inter alia be responsible for the selection of beneficiaries for the fund.
The Operational Committee reports to the Fund Supervisory Committee (PSC), and will be responsible for supervising the operations of the fund. The Fund Supervisory Committee will also be responsible for approving/rejecting beneficiaries recommended for approval by the Operational Committee.
8.0 The Duration of the Fund
The fund once established will operate for a duration of twelve months (12). It is envisaged that within this duration, there will be two funding cycles, each lasting not more than five months, with a provision of at least one month for the closure of the fund.